Campbell Soup vs General Mills Which Offers More Value?

Campbell Soup and General Mills are two major players in the food industry, known for their popular consumer brands such as Campbell's Soup and Cheerios. Both companies have seen fluctuations in their stock prices over the years, influenced by factors such as changing consumer preferences, market trends, and economic conditions. Investors may find value in comparing the performance of Campbell Soup and General Mills stocks to make informed investment decisions. Let's delve deeper into the financial performance and outlook of these two companies to evaluate their potential for growth and stability.

Campbell Soup or General Mills?

When comparing Campbell Soup and General Mills, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Campbell Soup and General Mills.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Campbell Soup has a dividend yield of 3.44%, while General Mills has a dividend yield of 3.57%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Campbell Soup reports a 5-year dividend growth of 1.12% year and a payout ratio of 81.13%. On the other hand, General Mills reports a 5-year dividend growth of 2.89% year and a payout ratio of 56.29%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Campbell Soup P/E ratio at 23.25 and General Mills's P/E ratio at 15.56. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Campbell Soup P/B ratio is 3.33 while General Mills's P/B ratio is 4.03.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Campbell Soup has seen a 5-year revenue growth of 0.08%, while General Mills's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Campbell Soup's ROE at 14.31% and General Mills's ROE at 25.64%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $42.58 for Campbell Soup and $66.39 for General Mills. Over the past year, Campbell Soup's prices ranged from $40.26 to $52.81, with a yearly change of 31.17%. General Mills's prices fluctuated between $61.48 and $75.90, with a yearly change of 23.45%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.